When buying Family Income insurance, do I have to provide information about my health?

When you ask for a quote, the insurance company will assume that you are in reasonable health for your age (This is known as 'Standard Terms'.)

If you like the quote and want to proceed, you will have to complete an application form from your chosen life insurance company. This application form will ask for detailed information about your health. This is because the life insurance company needs to assess whether you are an average level of risk (Standard Terms) or above average risk. If you are deemed above average risk, the insurance company may apply an additional premium or impose some extra conditions.

If you, or any members of your blood family have had a history of illness, the life insurance company probably will check on your general state of health before they decide whether they will accept your business on their Standard Terms. This health check may be in the form of a Doctor's report and/or they may ask you to undergo a full medical at your doctors or a doctors specified by the life company (at their cost!).

If following their enquiries, the life insurance company thinks you represent an above average risk, they will 'Rate' you and may require you to pay a higher premium than their 'standard terms' quote. With some illness histories they may even decline to provide the applicant with any insurance!

However, in most instances the life insurance company will offer terms without the need for you to undergo a medical - although if they feel it is necessary, they do have the right to request an examination.

If the life insurance company does request a medical it does not always automatically mean that they are going to charge you higher premiums, the medical may come back clean. Nor does it necessarily mean that they are concerned about your health - some companies ask for medical simply because the insured monthly income is high. The greater the income insured and the greater your age, the greater the chance of a medical and background check being required.

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